Sustainable Economic Development: On the Coexistence of Resource-Dependent and Resource-Impacting Industries

This paper studies the interactions between harvesters that depend on the renewable resource as a vital factor of production (i.e., fisheries) and industries that can have important impacts on the renewable resource but whose production does not depend on it (i.e., off-shore oil extraction) in the context of a growing economy. We examine these issues in the context of a closed economy focusing on how the co-existence between these two sectors affects the potential for sustainable development and how the well-being of the poor, i.e., the harvesters, is affected. We identify conditions under which existence and expansion of a resource-impacting sector may make sustainable development more likely. However, if these conditions are not met growth of the resource-impacting sector leads to resource depletion or even complete extinction and thus to the disappearance of the harvesting activity over the long run.


Issue Date:
2010-06
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/92390
PURL Identifier:
http://purl.umn.edu/92390
Total Pages:
24
Series Statement:
Working Paper
10-03




 Record created 2017-04-01, last modified 2018-01-22

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